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2023 - The State of Fashion 3
2023 - The State of Fashion 3
IO 2023
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After scaling over 20+ fashion brands, speaking with over 100, and analysing thousands…
Look…
they believe:
Look, i get it, you’re already juggling 5 hats and still feeling like you’re blindfolded 👩🏼🦯
But agencies are not the answer.
Our mission: Empowering fashion brands to take charge over their growth, by integrating their
marketing team.
Unlike most 1-trick pony agencies, specialists and consultants, we understand that growth is a
wholistic process.
3. We setup AND optimise your email & SMS marketing flows for better retention.
4. We build the 'creative assembly line' so you never run out of high-profit ad creatives.
6. We integrate the full funnel analytics dashboard, so you have 1 centralised place for making
decisions.
We do this, while building your in-house growth team, so you'll never have to hire an agency
again.
But before we talk business, I want to share with you everything I’ve learned over the past 7 years
of figuring it out in fashion, ecommerce & marketing.
So here we go!
Sales of apparel, footwear, and accessories continue to rise, hitting $204.9 billion in the US alone.
That’s tipped to grow by 13% this year, with consumers set to spend $204.9 billion on fashion items
online.
Fashion industry is leading total adspend (within DTC)
At $153.49 million, Clothing & apparel was by far the highest spending DTC ad-category in Q2
2022. (That’s excluding jewellery, accessories & shoes)
Once product market fit is found, the process to becoming a challenger brand is a matter of
months/years as opposed decades. There’s an abundance of access to capital, but if done right, the
process can even be bootstrapped by the founder and 1-2 operators.
This has led to a powershift from the corporation towards the consumer. If they feel somethings off,
they’ll simply go to your competitor who they feel more certain with.
eCommerce = Future
According to Statista, the ecommerce fashion industry’s compound annual growth rate (CAGR) is
tipped to reach 14.2% between 2017 and 2025, with the industry hitting a $1 trillion valuation by
2024.
Sales of apparel, footwear, and accessories continue to rise, hitting $204.9 billion in the US alone.
That’s tipped to grow by 13% this year, with consumers set to spend $204.9 billion on fashion items
online.
CPM’s are increasing
Limited adspace and more advertisers flocking to the online ad platforms is driving the cost of
advertising up year over year.
It’s like Moore’s law, CPM’s (cost per 1000 impressions) will always keep rising every year no
matter what.
If you’re paying $100 to acquire a new customer now, that price is most likely going to move up to
$150 next year (all else being equal).
Mediabuying is obsolete
With the rise of A.I. technology the adplatforms are becoming smarter, and hence more simplified
from the users perspective.
Most of the decisions formerly made by a’specialist mediabuyer’ (or agency), are now being made
by the A.I. powered algorithms of the adplatform. The adplatform decides who to show your ad to,
because the adplatform knows best.
The role of the mediabuyer has become more or less obsolete, in today’s world, mediabuying is just
a matter of clicking a few buttons to upload your ad to the adplatform.
You now have to optimize for blender marketing efficiency ratio (MER). Looking at the total sales of
your ecommerce, measuring against all it’s marketing costs.
As you scale keep : Measuring your cost per new acquired customer against the average customer
life time value
● More & more differentiated ‘me-too’ competition is flocking the market everyday.
● Everyone is shifting to online (including the big brands).
● The cost to advertise is increasing year on year.
● Mediabuying is now done by the algorithm instead of the agency/mediabuyer
These used to be competitive advantages on which the independent fashion brand could thrive on.
To compete on the advertising level of the business, you can only do 2 things.
(1) Lower the cost per user & (2) increase the revenue per user.
● Where user is a ‘unique website visitor’
● The costs are paid to the adplatforms
● And the revenue is made on the webstore.
Mediabying skills no-longer drives the cost per new website visitor down, it’s more or less equal for
everyone.
CPM (cost per 1000 impressions) x CTR (unique click through rate) = Cost per unique click.
Hence: cost per unique click = more or less equal to the cost per new visitor.
The adplatforms favors the advertiser who shows ads that are more enjoyed by the platforms users.
And hence drives down it’s CPM.
Moreover, having more people click on your ad, drives down your cost per click.
If the ad is really good, it inspires buying behaviour even before landing on the website and hence
drives conversion rate up.
→ 1. Increase your websites conversion rate through CRO (conversion rate optimization).
→ 2. Increase the average order value of your customers through CRO, offer & pricing.
→ 3. Increase the return customer rate of your store through email-, sms-, retention marketing.
But before we go over the practical details, you first have to understand the unique position of the
fashion brand.
Seasonality
Where most DTC categories have a consistent demand all year round, many categories in fashion
are highly infleunced by seasonality, take swimwear (spring/summer), athleisure (new-years,
spring/summer) & jewellery (christmas/winter) for example).
The models you choose, the experience of the photographer and the setting for the shoot are all
part of the product. Put a Skims dress on a B-class model, take away the influencers & have an
inexperience photographer mess up the lightning and setting, and it will never reach a similar result
in sales.
With fashion, there’s only so much you can do to differentiate your collection, and most USP’s are
generally the same over a category or sub-niche (sustainable, supporting, shapewear, quality,
functionality etc).
Fashion product differentiation is to a certain degree limited to style. And from there it spoils over
into how you position it online.
To differentiate your brand, create the culture & influence the gu-feeling your customer has about
your brand, you have to be smart about how influence the online sphere.
The Agency Fallacy
There is a time and place for using third party help, but when it comes to the growth of your
business…
Communication inefficiency
Working with more outside parties, the string of communication is longer, people don’t have full
information, and don’t speak as much as with an inhouse team.
Agencies are further removed from the product, have less information or receive information later,
making the process inefficient and prone to errors.
Simple avoidable errors are made by the agency everywhere, and all the time…
The in-house growth team replaces the position of the collection of freelancers and
agencies.
In the early days it may consist of just the founder and 1 operator.
Later down the line it may just be 1 CMO with 1 tech-savvy operator and 1 creative person for
writing copy editing creatives.
All the way up to having a small team of 6-8 people doing multi 8-figures collectively.
Here’s how the in-house growth team will rule over agencies any day of the week:
Motivational Alignment
The in-house growth team is focused 1 thing only: your business. They win, when you win.
Speed of execution
Everything happens much faster as communication, feedback loops & collaboration is much tighter.
Someone has a great idea in the morning, it’s live by noon, and feedback from the market is there
within the next days, which can be implemented the moment it’s in.
Creative power
Your in-house team knows who are the models, they know the influencers and could spot the
individual products in an instant, and can give you their stock, sales numbers & unique different
qualities, facts etc on the spot.
Not only does this make the marketing process less prone to errors… The amount of creative power
this knowledge unleashes is unsurmountable by any level of skill of an outside party or agency.
Transition
I found that the product, operations, design & manufacturing is not as much my thing as the
marketing & branding aspect of the business was.
Agency
And started my an agency, naturally I attracted lots of fashion brands (not my intention but so be it).
I ran that for 3 years, got some great case studies and good results for many brands, of which most
of them in fashion.
First ‘Exit’
Sold my agency after noticing the incongruencies of the agency model, it didn’t make sense to me
from an integrity point of view, besides that, I experienced from close up how stressfull it is for
founders to let go of their baby and put it into the hands of a total stranger (the agency).
I kept 2 clients on a consulting basis, it didn’t make economical sense for them to hire an agency,
and they already had a CMO and a creative person on the team. So we decided on consulting.
One of them, a sustainable surfing-wesuit brand, I helped the founder run ads themselves, he went
from 0 to product market fit, and they needed time off to find investors, figure out
operations/logistics, and launch a new website (they’re doing quite well right now with their in-house
team).
My other business
In the meantime I started consulting other agencies how to grow their business, but kept being
bothered by the misalignment of their business model (the agency fallacy).
Back to swimwear
During the span of 4 months, the swimwear brand grew from 0 to $100k/mo, still completely
self-reliant without hiring any mediabuyers or external help from agencies (even their website they
had build themselves in the Shopify no-code theme builder).
They reach out to me later, wanting more help scaling it further and we scaled the business from
$100k to $250k/mo in less then 3 months.
My other business
In the meantime of those 12 months, I started consulting other agencies how to grow their business,
but I kept being bothered by the misalignment of their business model (see the agency fallacy
earlier mentioned).
My new phase
I then realized the opportunity: All these fashion brands being bothered by agencies, they don’t
need none of that, they’d be much more successful bringing it in-house.
I shifted my focus back to fashion brands and I’m now fully focused on helping fashion brands take
their marketing in-house.
● watched all the Masterclass.com trainings on fashion (Sarah Blakely, Anna Wintour etc)
● and watched the interviews with founders of the next-generation of fashion brands among
others: Natalie Massenet (Net a Porter) , Emma Grede (Skims), Virgil Abloh (Off White) etc.
● Visited Paris for fashion week, attended some parties and pop-ups, met really cool people.
However… Although all of these things helped me understand the world of fashion better…
Surprisingly, I could barely find anything of practical value for the (online) growth of an independent
fashion brand.
Right now, there’s NOTHING available for (aspiring) fashion founders to learn how to effectively
grow a fashion brand.
Yes, there’s loads of trainings on ecommerce, and some old school university classes and corporate
conferences on fashion manufacturing, operations & design.
But there’s not a single book, podcast, course, whitepaper or agency that integrates both
worlds together and show you how to effectively scale a fashion brand from 0-$10M and
beyond. NONE.
To empower fashion founders with the vision, tools & knowledge to take charge over the growth of
their brand.
Right now, we are the ONLY growth agency & learning platform focused entirely on fashion
brands, helping them scale by bringing their marketing in-house.
Below you can find an in-depth case study of how we’ve scaled a high-end, sustainable swimwear
brand from 0 to $250k/mo →
Find separate doc here: Case Study: 0-$3M/year High-End Swimwear Brand
Key statistics:
● From 0 to $250k/mo in website revenue.
● Website conversion rate from 1% to 1.5% (50% increase(!))
● Email marketing 30% better deliverability, 80% revenue growth
● 1500% increase in organic engagement on socials
They did it without any help of outside agencies, just our weekly consulting calls, audits &
recommendations.
Occasionally we went in to make some changes, but we weren’t running things for them
permanently.
Therefore, all credit goes to the incredible team of this brand, we were merely their compass to
show them in what direction they should go.
The marketing team was already in place, but did not have any prior education, experience or track
record in the topics of scaling fashion brands vertically: (email marketing, paid advertising,
conversion rate optimization, brand building etc).
All we did was directing their attention to the right places, and setup systems properly so things can
run by themselves.
If you’re curious if your current marketing team can 10x their output, and wondering if it
would be viable to fire your agency and take things in-house, feel free to book in a call with
me personally here: https://www.ecomgrowth.io/ecomgrowth-thanks
● Stopped doing sales, outlets, promotions, which helped keep sales consistent and train
customers not to wait for sales but just to pay full price for a quality item they wanted.
● A/B tested Form Signup (and it went from 2.9% to 4.4% signup conversion)
While a difference of 1.5% doesn’t sound like much, on a store with 100.000 visitors per month, this
means en extra 1500 people subscribed to the list, going through the brand-integration campaigns
and a part of them being turned in to loyal customers.
In this case: increasing the conversion rate from 1% to 1.5% on a store with 100,000 monthly
visitors leads to an extra 500 customers.
500 customers at a $200 AOV brings in an extra $100,000 every month, without spending a penny
more on marketing.
Most CMO’s and founders of fashion brands never think about conversion rate optimization.
Those who do believe it either requires a complete theme makeover, or having to perform
‘black-hat’ sales tricks in copywriting like ‘countdown timers, low stock messages and other crap.
You can increase your conversion rate by over 40% simply by making the shopping experience
better for the customer.
● I personally went into the Shopify theme editor and Implemented small & simple
tweaks to improve the checkout and cart process (increased conversion rate 45%)
● Then consulted on conversion implementations for the launch of new website
(increased conversion rate another 21%)
● A/B testing is ongoing with the aim to increase conversion another 50%.
5. Creatives optimization
● Probably the most valuable part during the consulting period was identifying what ads were
working, and helping the team understand the importance of frequency of new creatives.
● We could then iterate on what was working, and created ‘winning ad templates’ – simple
structures of ad creatives that we know will perform.
● We split tested landing pages, models, products, individual products vs multiple products in
an ad, placements & format (story, reels, feed).
● We monitor the click-through rate, CPM (cost per 1000 impressions) and cost per purchase
to decide which ads are winning.
● Going omnipresence is a low-risk, high reward move because 9/10 times you’ll be profitable
right out of the gate – you start with low adspend so it’s easy for the adplatform to be super
profitable on the small pool of people that are highly resonating with your brand. From here
you can find out how profitable you can stay while increasing the adspend.
● TikTok’s pixel & platform learning phase is longer, started at a $100 cost per purchase, went
to $75 and is currently climbing down towards $50 just in the first 60 days after launch.
● Pinterest & Twitter in process. (Yes, Twitter is a gold mine, completely underutilized,
currently 20x cheaper then Facebook & Instagram to advertise on, super easy to setup
where visual ads perform better, so don’t worry about having to ‘tweet’ your way to success)
7. Influencer marketing
● Installed and setup the process to launch GRIN, this helped:
○ Identify influencers (100k+ following) from the current customer base, these people
are already introduced to the brand and sometimes may already be raving fans.
○ Find new influencers of which the GRIN database has identified has
overlap/resonance with the current customer base.
○ Setup the attribution system for tracking which orders came from the audience of
which influencers.
○ Stock updater: TripleWhale notifies us when best sellers are going out of stock, how
much we should restock and the missed revenue of not restocking (in-time). It also
notifies us which specific ads we should stop scaling so we’re not pushing ads
containing out of stock products.
● This was not our doing, but simply a restructure in the team to bring it back in-house, team
was more apt for the job and singlehandedly took average like count from 200 likes per post
to 3000-4000 likes per post.
Growing fashion brands online can be broken down into 3 key metrics:
This is dry results you see on the forefront, behind these KPI’s is a lot of strategy, creativity &
collaboration.
Part 1 – improving your brand image, product & resonating better with your customers (tribe).
Part 2 – a simple set of action (technical and creative) that you either implement once, or
continuously that will naturally lead to improved results.
How you run your brand is up to you, we can advice here and there, but most of that is your
ownership.
What we do is to make sure you nail Part 2, so you’re growing fast and profitable enough to have all
the peace of mind & time to focus on your brand, product & tribe.
● We help you scale your most profitable channel first (often Meta ads).
● Then help you go omnichannel as soon as this is possible, allowing you to capitalize on
young (cheaper) ad platforms, diversifying your spend, locating possible scaling channels &
having a sense of ‘omnipresence’ to improve your brands perceived authority.
● We don’t do done-for-you creatives, instead, we help you build the creatives assembly line,
so you’re never relying on outside parties for the most important thing in your business:
creatives.
● We setup the attribution tracking so that we’re using data to correctly understand exactly
what is working and what is not, from channel all the way down to ad-level creatives.
● Upon onboarding we’ll do a full website audit and deliver a ‘quick wins checklist’: these are
small tweaks that have proven with our partner brands to create a smoother shopping
experience, have your customers buy more products and as a result instantly improve your
conversion rate and average order value.
● Part of the delivered checklist we can install done-for-you within 7 days, so (in most cases)
you’ll see an instant 5-15% increase in revenue without spending a dime more on ads, right
after onboarding.
● For the remainder of the checklist we’ll work together with your developer or give you access
to one of our partner developers to implement these simple tweaks.
● For long-term conversion rate optimization (6-12months): We build the A/B testing strategy
and roadmap, setup the tech to allow for simple A/B tests and analysing shopper behaviour,
then hand it off to your team/cmo/developer to execute the tests over time.
● Retention comes down to strong branding and tribe-building, and then having the right tech
in place to make sure the relevant messages are delivered to your customers at the right
time.
● We perform a full email/SMS marketing account audit, and create a checklist with the simple
action steps to take in order to improve deliverability, segmentation, open and click-through
rates, improve full funnel tracking and attribution and setup the roadmap and strategy for
A/B testing etc.
● We’ll map out your automated email/SMS flows (or improve existing), making sure they are
both highly converting and all congruent with the overal branding message.
● Upon onboarding we create a custom 4 month growth roadmap, including all the KPI goals
and attached action items to complete in order to hit your goals.
● While scaling your business, we help bring marketing in-house & train the team: in some
cases this means just the founder and CMO/ecom manager, in other instances it may mean
help bring in an in-house mediabuer/analyst, CMO & marketing creative director.
● Done-for-you: We setup paid ads cahnnels, email marketing, creatives assembly line,
influencer strategy & website conversion rate optimization
● Done-for-you: Install analytics for CRO, paid ads and customer research (buying behaviour
& stock predictions)
● Done-with-you: In the first month you may benefit from having us (partly) do paid advertising
for you, but once we find the optimum selling system (OSS) we will gradually hand parts of it
off to you and your team, and keep being involved on a consultative basis.
● We keep consulting you during the whole partnership on anything that contributes to the
growth of your business (i.e. all things mentioned above).
● You and your team members have 4 months full access to myself & my team. Meaning 24/7
support support on Slack and 2 scheduled 30m-1h consulting calls per week.
● Life-time access to our protocol, SOP’s, checklist and video trainings. So you keep
benefitting from us even after we’re long gone, and have protocols in place to train new
team members and keep them in check for hitting KPI’s.
● During the 4 months sprint, we will perform custom audits and you’ll receive simple, practical
reports on all parts regarding growth of your business: email marketing, paid advertising
strategy per channel, CRO & influencer marketing.
If you’re curious if your current marketing team can 10x their output, and wondering if it
would be viable to fire your agency and take things in-house, feel free to book in a call with
me personally here: https://www.ecomgrowth.io/ecomgrowth-thanks
The mediabuying part (paid ads/influencers) of the growth process does not take more then
1-3h/week and no more then 15h/week with a revenue of $5M ARR+. Hence it’s absolutely absurd
to hire an expensive agency just to click a couple of buttons and draw some ‘wet finger in the air’
conclusions on results.
You can get started right now, and as you scale up it will become apparent where you need to make
hires (part-time or full-time). We help with identifying, hiring and training those hires once necessary.
Is this also suitable for me if I already make more than €10 million in annual sales?
At this level you are our absolute dream customer. Product Market Fit is in place, relatively large
scaling achieved and now it's about the really big numbers. The establishment of a lean and
efficient in-house structure is particularly important for you. Fashion brands of this size hire us to
become completely independent of agencies and set up an in-house performance marketing
department.
Are my competitors also with you? I don't want to give any insights
Our customers enjoy cross-category exclusivity. Your competitors operating in same geographic
location cannot work with us during this time and we agree to extreme levels of non-disclosure
agreements (NDAs).
Plus, we are the only growth partner in the world right now specifically dedicated to fashion brands.
The marketing of fashion is completely different then from general ecommerce DTC industries and
If you give out all your content for free, what do we get in the collaboration?
We don't want to keep any information secret, but rather disclose everything we do. Knowledge,
documents and SOPs can be shared - the direct application and competence is only available from
us. In addition, knowledge alone is of no use, it is about individual adaptation to the specific use
case. So if you want to be in the fast lane when it comes to using the content, come to us.
Can you help with problems like payment providers, blocked ad accounts, etc.?
We have a huge network of problem solvers for exactly these use cases. Paypal Holds, Banned Ad
Accounts, Declining Customer Feedback Score, Banned Google Merchant Centers are all issues
that no longer bother our customers as they are finally resolved.
Is there an exchange with other brand owners on the same or a higher level?
The key point in working with us is access to a network of 7 & 8-digit founders. The level of support
and community is unseen in the.
You can do the process on your own. However, it can also be implemented with a much higher
probability of success in a fraction of the time.Take all the time you've invested in free content or
hanging out at some fairs and seminars. Do you get an ROI on this time or are you just talking it
up? The truth is:
Implementation rules over Knowledge and Integration rules over Outsourcing, everyday of the
week. Anything else is mental masturbation and won't get you any further.
If you’re curious if your current marketing team can 10x their output, and wondering if it
would be viable to fire your agency and take things in-house, feel free to book in a call with
me personally here: https://www.ecomgrowth.io/ecomgrowth-thanks
Not only that, I’ll include all the specific insights we learned from doing over 300+ A/B test on a
multitude of brands across different fashion sub-categories.
Pre-requisits
● Strong B2B Wholesaling Backbone (either this, or a validated vertical retail of $1M ARR)
● Unit Economics Make Sense (there is margin after acquisition costs & overhead)
● An Outstanding “Product” (includes both offer & creatives: models, photography & location)
a. Mediabuying
b. Creatives
c. Influencer Management
d. Email & SMS Marketing
e. Simple CRO tweaks
Once you’ve brought your marketing in-house, the next phase is all about doing more of what you’re
already doing.
This is where you can scale from $200k/mo to $500k/mo. By now you’ve found a scalable vertical,
the steps in phase two will simply help you scale, without losing to much profitability.
f. Omnipresence
g. Congruency
h. Creatives Hyper optimization
i. Volumizing
j. Advanced CRO practices
Instead, from here it’s all about optimizing and proffesionalizing the things you’re already doing.
o. Community
p. Collaborations
q. Operations
r. International
If you’re curious if your current marketing team can 10x their output, and wondering if it
would be viable to fire your agency and take things in-house, feel free to book in a call with
me personally here: https://www.ecomgrowth.io/ecomgrowth-thanks